As many of the government support measures to help employees are coming to an end, HMRC has published an important press release on claiming the Working Tax Credit. During the pandemic, the requirement for employees receiving the Working Tax Credit to inform HMRC about temporary short-term reductions in their working hours was suspended. Many employees who had been furloughed were working fewer hours than before the pandemic. Now that the furlough scheme has ceased, claimants may need to update their working hours if these have been reduced.
Employees do not need to tell HMRC if they re-establish their normal working hours before 25 November 2021, but from then, they must inform HMRC within the usual one-month window if they are not back to working their normal hours shown in their Working Tax Credit claim.
It remains a requirement for recipients of Working Tax Credit to notify HMRC about any permanent changes to their circumstances within one month – for example if they are made redundant, lose their job or their hours change permanently during this time.
As a general rule for claiming the WTC, claimants must work a certain number of hours a week. For couples, one member has to work at least 16 hours a week, with the joint total being 24 hours. Single people who are responsible for children (for example single parents) can claim the WTC if they work at least 16 hours per week. Claims can also be made by those without children who work at least 30 hours per week if they are aged over 25. There are different limits for those claiming the disability element and for those aged over 60.